Regional equities fall over 5% in South Korea and Japan amid escalating geopolitical risks and profit-taking in tech stocks.
South Korean shares plunged more than 5% as profit-taking in SK Hynix dragged down the broader market, while Japan’s Nikkei also declined. The sell-off extended across Asia-Pacific equities as Middle East tensions escalated, with the U.S. launching fresh strikes on Iranian targets and Iran targeting Jordan with ballistic missiles.
Goldman Sachs expects U.S. core CPI to ease to 2.8% year-on-year in June, down from previous prints, as inflation concerns persist. Oil prices surged over 3% amid fears of disruptions in the Strait of Hormuz, while gold slid more than 1% on Fed inflation warnings and safe-haven shifts.
The People’s Bank of China set the USD/CNY reference rate at 6.7972, slightly above estimates of 6.7850. Angola added the yuan to its foreign reserve currency options, reflecting deepening ties with China alongside the dollar and euro.